Fiscaal Nieuws from the Netherlands reports on the case of a Dutch-American dual-citizen who appealed to the Dutch Board for the Protection of Human Rights after his investment account with BinckBank was closed following the signing of the FATCA IGA by the Dutch government on December 18, 2013.

Here is a translation of the article kindly supplied by Innocente:

FATCA unlawful discrimination by banning US customers

April 10, 2014

The American X has lived in the Netherlands since 1970 and also has US citizenship in addition to Dutch. He had an investment account with BinckBank (“Alex”). On December 1, 2013 BinckBank ended the relationship because X had not shown that he is not liable for taxes in the United States. X approached the Netherlands Institute for Human Rights to claim that BinckBank engaged in unlawful discrimination due to citizenship. BinckBank argued that it had terminated all 150 US customers who met the definition of “US Person”, used by the US Internal Revenue Service (IRS), because it refused to comply with requirements resulting from the planned Dutch legislation in response to the US Foreign Account Tax Compliance Act (FATCA) to provide all transactions and historical transaction data by US Persons to the Dutch Tax Authorities. According to BinckBank the discrimination was based on a generally binding regulation, because the agreement on December 18, 2013 between the Netherlands and the US Intergovernmental Agreement (IGA) for the implementation of FATCA forced it to do so . The Institute left open the question whether the IGA was a generally binding regulation because the IGA did not require BinckBank to close its customer accounts because of their US citizenship The Board also rejected the appeal by BinckBank for reasonableness and fairness, as the broad obligations required by FATCA brought disproportionately heavy costs. The law, in the General Equal Treatment Act (Equal Treatment Act), explicitly states that direct discrimination on grounds of citizenship was not only prohibited, except for exceptions included in the Equal Treatment Act itself. Honoring the appeal made by BinckBank on reasonableness and fairness would be contrary to the closed system of the Act. The Board concluded that BinckBank had engaged in unlawful discrimination in the provision of services on grounds of citizenship.

http://www.futd.nl/fiscaal-nieuws/7286/door-fatca-weren-van-amerikaanse-klanten-verboden-onderscheid/

Stephen Kish and Lynne Swanson have reviewed the legal opinion provided by constitutional lawyer Mr. Joseph Arvay on the constitutionality of the pending legislation “Canada-United States Enhanced Tax Information Exchange Agreement Implementation Act”. This act is aimed at implementing the “Intergovernmental Agreement” (IGA) designed to make the “Foreign Account Tax Compliant Act” (FATCA) operative in Canada.

The opinion has also been discussed with Mr. John Richardson, a Toronto lawyer, with whom we now have solicitor-client privilege, and who will be part of Dr. Kish’s and Ms. Swanson’s “litigation committee”.

The lengthy opinion provides in detail the pros and cons of the arguments, and possible outcomes.

There are good arguments that the proposed legislation infringes at a minimum on constitutionally protected rights and freedoms. Nevertheless, there are also arguments that the Government of Canada may employ to counter our position and, we emphasize, there is no certainty that litigation will be successful. Further, any litigation will be hard fought and very expensive. This litigation is not for the faint of heart.

Given the opinion of Mr. Arvay and discussion with Mr. Richardson, we advise that it is our intention to take all necessary steps to commence litigation against the Government of Canada once the IGA implementation legislation is enacted. Moreover, the nature and impact of the unprecedented legislation on all persons in Canada and those throughout the world who will be impacted by FATCA demands that we exercise this option that is in the public interest.

Very significant fundraising will be required.

Stephen Kish
Lynne Swanson

[Cross-posted on Maple Sandbox]

To help you judge if,

your experience with your local bank, credit union or insurance company (or as the US defines them: “foreign financial institutions”) will be a comfortable one, as some advertise,

shared here are excerpts of notes from a meeting set up with a “US Person” and Canadian husband by a Vice-President of the wealth management branch of one of the Big Five Canadian banks: Continue reading →

Stephen Kish and Lynne Swanson today received a very lengthy and comprehensive legal opinion, from constitutional lawyer Joseph Arvay, on the constitutionality of Canada’s pending FATCA IGA legislation.

Stephen Kish

[Cross-posted at Maple Sandbox by Lynne Swanson]

People who feel the need to confirm their attendance to the Alberta sessions for either Calgary or Edmonton can respond by email to me via the following Kijiji ads:

Calgary Session
Edmonton Session

I will pass on the number of confirmed people for the Calgary session to Calgary411

Thanks!
~ GwEvil ~

This is cross-posted from http://maplesandbox.ca/2014/what-we-leave-behind/ and was originally posted there on Jan 9, 2014. It is the text of a letter that was sent to the Honourable James Flaherty.

The Honourable James Flaherty, P.C., M.P.

Minister of Finance
House of Commons,
Ottawa, Ontario
K1A 0A6

Re: Minister Flaherty, how do you want to be remembered?

Dear Minister Flaherty:

There comes a time in many (not all that’s for sure) people’s lives when they wonder what they have accomplished, and what they will leave behind after their time on this planet is up. I’m at that point. And I feel like I’ve not accomplished much; at least nothing on a global scale. Sure, I’ve been a ‘good person’, always an exemplary employee, pretty good mom, polite to a fault, paid all my taxes (at least the ones I knew about it, and to the government of the country I’ve lived in all my working life), but I will leave nothing behind that the world will remember me by. Not that that’s a bad thing as it is the reality for 99.99% of all of us.

What about you? Will the world remember you? Will Canada?
Will your name go down in the history books? And if it does, what would you want to be remembered for?

Do you want to be remembered, as the Canadian Finance Minister who caved and signed on to FATCA and solidified US domination of the world forever more, or as the person who changed the direction of the world because he had the balls to say ‘NO’ to the USA bully? Because that would take huge balls! And that would surely get you remembered not just as a very ‘good person’, but as someone instrumental in positive global change.

A lot is at stake here. Not just for ‘US persons’ in Canada (or elsewhere), but for people of every citizenship living everywhere in the world, and for their children, though most don’t know it yet, and many never will. But the history books will tell the story.

You have a chance – I don’t – to write history. Don’t blow it. People like me are counting on you. Feel free to pass this letter on to your boss, if you think it will help change the course of history.

Sincerely,
Xxxxxxxx Xxxxx (real name not hidden from Flaherty)
Canadian citizen since birth in 19xx (unfortunately also born with red/white/blue tattoo)

IRS wants to know how it can improve service to persons living abroad:

See below portions of a letter recently received from a person living outside the U.S. This letter, sent from a division of the IRS, invites persons to fill out a survey on the “unique perspective” of people like us with the aim of improving IRS services.

Apparently there will be 4000 such requests mailed out (out of 7 million or so US people abroad). The IRS survey help desk advised me over the phone that the 4000 names are provided by the IRS to the survey company.

It appears that the invite will be sent to some US persons abroad who have NEVER had an interaction with the IRS.

How does the IRS discover such never-filers? According to a past survey discovered by @MyKitty:

“Nonfilers with a perceived filing obligation were identified through their information on the IRS
nonfiler database and matched to passport data from the U.S. Department of State.”

http://www.irs.gov/pub/irs-soi/12rescontaxpayexperience.pdf

A never-filer with filing obligation would never ever respond to an IRS online survey. Right?

Not true. 16% of nonfilers with a perceived filing obligation actually responded to the 2011/2012 survey.

The helpdesk will not provide survey questions to me, but I may be able to obtain the questions and if so will add these to this post.

Here is the letter (I have boldened a few sentences):

“Date

Dear [ ]

Help us improve our services!

The Internal Revenue Service (IRS) is currently conducting the 2014 IRS Survey of Individuals Living Abroad with the help of an independent research company, ICF International.

I invite you to participate in this important study seeking to understand the unique perspectives of individuals living outside the continental United States (U.S.).

Even if you have never had an interaction with the IRS [If you never had an interaction with the IRS, what should be your response to this invitation?], your insights are still extremely valuable in helping us improve our services for individuals living abroad, including those living in U.S. territories.

ICF International will not provide any identifying to the IRS and will keep your identity private to the extent permitted by law.

….Your participation in this study is entirely voluntary; however by completing this survey, you will help the IRS develop a comprehensive portfolio of service improvements. The service should take about 10 minutes to complete.

You do not need to wait for the paper survey if you prefer to take the survey online….entering password…

I am personally committed to improving service to individuals living abroad. Please help me…If you wish to verify the IRS’s sponsorship….

https://www.icfmtvweb1.com/irs_nonfiler/authenticate.asp

IRS Division…”

[Part of fine print at bottom of letter: “The information you provide may be disclosed to an IRS contractor when authorized by law.”]

I’ve said it. Others have said it. We admit in the past supporting the Conservative government with our vote and, in some cases, with our donations. Now? We cannot vote for a party which fails to fulfill what is arguably the number one mandate of any government: to provide protection for the citizens of Canada. This government plans to hand over the financial information of loyal Canadian citizens to the IRS, a criminal branch of the foreign government laying in wait at our Southern border. This treachery will not go unpunished. Consider the following comment:

I know that we can’t expect any help from our Conservative government, but I am feeling a bit better today. I am a Canadian business owner with an accidental American spouse. I have always supported the Conservatives, occasionally with donations. I made a pledge a while back, after a phone solicitation, but did not send it in. A representative from the party called me to ask where my donation was, and I happily told her she wasn’t getting one, not now , or ever for that matter. She asked why and I told her it was because of the government`s position on FATCA. I had to spell it for her, but she assured me she would pass the info on.

Please make more comments like this. Please comment especially if you were voting conservative and now will refuse to do so. My wife is a business owner. But next election night, I am going to take Mrs. Petros out to dinner, buy her flowers, go to a movie, and thus completely distract her.  So for every one former Tory voter who is a so-called US citizen, whose the government plans to commit extraordinary rendition of their bank account information, the Tory government will likely lose at least two votes.

OTTAWA – Former finance minister Jim Flaherty has passed away.

Police and paramedics were gathered Thursday around a downtown Ottawa condominium.

The House of Commons immediately suspended business.

Flaherty, 64, had been battling a rare skin condition, but insisted upon his surprise resignation last month that his health was not a contributing factor in his decision to step down. He had stayed on as the MP for Whitby-Oshawa, but was not planning to seek re-election.

The former minister was discovered with no vital signs.

Arthur Cockfield and Allison Christians in a new article out today at the Globe and Mail write:

For the first time in Canadian history, our federal government is preparing to provide a foreign government with sensitive personal financial information about hundreds of thousands of Canadians. It is doing so to stave off threatened economic sanctions, and is getting nothing in return.

Read the entire article here: http://www.theglobeandmail.com/globe-debate/how-the-us-pulled-off-the-great-canadian-privacy-giveaway/article17916327/#dashboard/follows/